VP Jusuf Kalla: Tax Issues Curb Policy Issuance on Electric Cars

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Laila Afifa

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  • TEMPO.CO, JakartaVice President Jusuf Kalla revealed the government is hampered by tax issues in passing regulations on electric cars that are targeted to complete this year.

    “It’s definitely about taxation; [because] there is a rule that will take effect this year, and others in the next two years,” said Kalla when met in the 2019 Gaikindo Indonesia International Auto Show or GIIAS, at ICE BSD, South Tangerang, Thursday, July 18.

    According to the VP, consumers and producers must be taken into consideration in drafting electric vehicles tax. Therefore, related ministries, namely the Industry Ministry, the Finance Ministry, and the Transportation Ministry, should synchronize the draft bill.

    The tax in question is the Sales Tax on Luxury Goods or PPnBM. At present, the tax for electric cars is deemed too pricey and is also subjected to high import duty.

    “If the tax is high, consumers refuse to buy,” Kalla said. However, if there is no tax or import duty, Indonesia will potentially lose income from tax.

    Therefore, Industry Minister Airlangga Hartarto said the government is mulling to provide fiscal incentives in the form of tax holiday for companies that put investment in a certain value. “We have granted it to Toyota,” he said.

    FRANCISCA CHRISTY ROSANA